In an age of austerity, the MHoC believes that the EU can not justify any significant increase in the EU budget. We believe that the EU budget should be frozen for five years and during any financial year and subsequent three to five years depending on the time required for a recovery to occur. This pact also enshrines increases in the EU budget to be limited to the rate of inflation or less.

T06 - Budget Regulation Pact

Article 1: The budget of the EU from the financial year 2013/ 4 to 2017/ 8

1.1. The budget of the EU shall not rise from the amount designated for the financial year 2012/ 3 between the financial years 2013/ 4 and 2017/ 8.

Article 2: The budget of the EU after the financial year 2017/ 8

2.1. After the financial year 2017/ 8, the budget of the EU may rise in accordance with the average rate of inflation across the EU as a maximum.

Article 3: Exemptions to the increase in budget

3.1. The EU budget may not be increased from the previous financial year if the EU is deemed to have been in recession.
3.2. A recession is defined as two quarters of negative growth in the EU with each quarter’s growth being calculated as an average of the growth rates of the EU member states.
3.3. In cases where the second quarter of negative growth occurs in the first quarter of a new financial year when the budget of the EU for the new financial year has been agreed, the budget of the next financial year shall not rise.
3.4. After a recession has been declared for the EU using the definition in article 3.2., the budget of the EU may not rise for the subsequent three financial years after the recession has been declared over.

Article 4: Commencement, Short Title and Extent

4.1 This Pact may be cited as the EU budget regulation Pact
4.2. This Pact shall extend to the European Union; and
4.3. Shall come into force on the 1st April 2013 following ratification by the national Parliament of each member state.